Guest Author - Vannie Ryanes
Unfortunately it’s that time of year when most of us grudgingly write a few checks to Uncle Sam. And while it’s too late to cut back your tax burden from the year’s past, there are a few things you can check out to see if you can save money this year.
Here are three ways you may be able to help with taxes:
Retirement plans. In 2004, contribution limits to 401(k), 403(b) and 457 plans increased $1,000–$13,000.
Limits on SIMPLE plans rose $1,000–$9,000 for small-business owners and employers. And if your employer offers a retirement plan, you can get a deduction for contributions to a traditional IRA if you make less than $55,000 a year, or $75,000 for a couple filing a joint return.
College tuition. Deductions from college tuition increased from $3,000 to $4,000 for those who make less than $65,000 as an individual or $130,000 for a couple filing a joint return. Those with an income between $65,000 and $80,000 (or $130,000 and $160,000 for a married couple filing jointly) can deduct $2,000 from their tax return.
Health savings account. HSAs allow you to save money to pay for health-care expenses from a tax-free account. Those with “self-only” plans can contribute $2,500 and families can store up to $5,150 in pre-taxed dollars in a HSA account.
—adapted from Time
Talk to your tax couselor about these and other financial tax tips.
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